OceanaGold Corp T.OGC

Alternate Symbol(s): OCANF

Metals & Mining Gold

OceanaGold Corp is an intermediate gold and copper producer. The Company has a portfolio of four operating mines: the Haile Gold Mine in the United States of America; Didipio Mine in the Philippines; and the Macraes and Waihi operations in New Zealand. The gold, copper, and silver that the Company produces are essential to the renewable energy and transport sectors, life-saving medical devices and technology, which connects communities around the world. The Didipio gold and copper mine is located in Luzon, Philippines. It produces gold and silver as dore bars and copper in concentrate. The Macraes Operation on the South Island of New Zealand is an active gold producing mine. The Company's Waihi Operation in the North Island of New Zealand is an underground operation. The Haile Gold Mine located in Kershaw, South Carolina is a gold mine on the East Coast.

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OceanaGold Corp > Positive, Scotia Maintains $5 target and SO

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Post by echo2on Jul 17, 2020 10:27am

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Post# 31280840

Positive, Scotia Maintains $5 target and SO

Valuation: 50% 1.20x NAV and 50% 7.0x 2021E CFPS

Latest Research (July 17, 2020):

OUR TAKE: Positive. With this note, we have included the results of the Waihi District study into our model, boosting our total corporate NAV by ~8%. We now value Waihi at $590M (C$1.16/sh) using the Scotiabank GBM price deck with LT gold at $1,400/oz.
Initial mine life with all Waihi deposits runs to 2036 with total production of 2.2 Moz Au (~138koz Au/yr) with LOM (Life-of-Mine) AISC of $627/oz; peak production reaches ~300 koz in 2027/28. The company stated the after-tax NPV is $665M with an IRR of 51% using $1,500/oz gold; notably, even at a lower gold price of $1,300/oz, we estimate a robust project NPV of ~$446M and an IRR at ~32%.
OGC noted that permits for the WKP UG, Martha open pit and additional tailings storage are on the critical path with the process to begin in 2H/20. Following model revisions, our C$5 price target and SO rating are maintained.